Sign up
Log in Sign up
Wed 12 Jan 2011, 08:43 GMT

China Cosco eyes bunker acquisition

China Cosco Holdings Co. Ltd. is reported to be interested in buying a marine fuel company as part of its asset purchasing strategy in 2011.

The share value of China Cosco jumped by as much as 6.4 percent yesterday - the largest intraday gain since January 11th 2010 - on news of potential asset purchases and an improved outlook for container shipping.

Analysts said yesterday that China Cosco could buy oil tankers, shipyards and a bunker supply company from its parent China Ocean Shipping (Group) Company (Cosco Group) as China encourages state-controlled firms to inject more assets into listed units.

Cosco-owned bunker companies currently include China Marine Bunker (PetroChina) Co., Ltd. (Chimbusco), a 50-50 joint venture between Cosco Group and oil giant PetroChina Company Limited. Chimbusco is China's largest physical supplier of marine fuel by volume. Towards the end of last year the company was reported to be interested in setting up a physical supply operation in the world's largest bunker port, Singapore.

Singapore-based Sinfeng Marine Services Pte. Ltd. was established as a wholly owned subsidiary of Hong Kong's Cosco International Holdings in November 2009. It is mainly engaged in the provision of marine fuel and related services including marine bunker supplies, trading of oil and oil related products and brokering services for clients.

Double Rich Ltd, a Hong Kong-based bunker oil trading and supply company, is 82 percent owned by Chimbusco and 18 percent owned by Cosco International.

Citigroup Inc. yesterday upgraded China Cosco stock from 'hold' to 'buy' following what was referred to as "a fundamentally improving container shipping outlook". Analysts said China Cosco may benefit from a rebound in container rates next year and a seasonal rise in dry bulk rates after next month’s Lunar New Year holidays.

Container ship   China 
J-ENG 6UEC35LSGH hydrogen-fuelled engine unveiling. Japan Engine completes land-based testing of landmark hydrogen-fuelled engine for large vessels  

Hydrogen co-firing rate of at least 95% achieved during factory testing.
Aerial view of tanker vessel at sea. Ethanol edges into shipping’s fuel mix as methanol crossover eases adoption barriers  

Rising interest from cargo owners, shared technology with methanol and Brazilian production growth push ethanol beyond regional niche status.
AiP award ceremony for multi-purpose fuel tank and FGSS design. ABS grants Hanwha Ocean approval for dual-fuel tank enabling LNG-to-ammonia switch  

In-principle approval awarded for fuel tank and supply system enabling LNG carriers to convert to ammonia without replacement.
Lloyd's Register issues Factual Statement (FS) for PureMetrics CEMS. Lloyd's Register confirms suitability of Daphne Technology's emissions monitoring system  

Factual Statement validates the PureMetrics design for monitoring greenhouse gas emissions from marine engines.
IMO building with national flags. IMO issues shipboard biofuel blend checklist developed by IBIA  

Checklist for FAME-based biofuels formally incorporated into IMO document, supporting crews handling biofuel blends for the first time.
YM Weight naming ceremony. Yang Ming names fourth LNG dual-fuel container vessel YM Weight  

Newbuild features high-pressure dual-fuel main engines capable of running on either LNG or low-sulphur fuel oil.
Bureau Veritas grants AiP to SDARI. Bureau Veritas grants AiP to SDARI’s LNG dual-fuel liquefied CO₂ carrier design  

Classification society approves 85,000-cbm vessel concept designed to support the growing carbon capture and storage sector.
Houston skyline at night. JuWonOil looking to strengthen with two Houston hires  

Texas-based firm is recruiting a marine lubricants sales executive and a marine fuels and distillates trader.
Lloyd's Register (LR), Seapeak, Kongsberg Maritime and Tunable JDP launch. Four firms partner to trial continuous emissions monitoring on LNG carrier  

LR, Seapeak, Kongsberg Maritime and Tunable will test onboard CO₂ monitoring against engine data and default emissions factors.
Bunker Holding logo. Bunker Holding reshuffles commercial leadership across brand portfolio  

Appointments announced across KPI OceanConnect, Glander International Bunkering and its digital sales operations.




   Fuels & Propulsion

Ammonia B100 B24 B30 Bio-LNG / LBM / LBG Biofuel Biogas Biomethanol CBM Dual-fuel E-fuel E-methane / e-NG E-methanol Electric Ethanol FAME Green hydrogen Green/e-ammonia HVO Hydrogen LNG LPG Lubes Methanol MGO Nuclear UCOME ULSFO VLSFO Wind



 Recommended